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Account for daily oil production – Banu tells NNPC

By on February 28, 2014

The Kwara State Commissioner for Finance, Mr. Demola Banu, has urged the Nigerian National Petroleum Corporation to give an accurate account of the nation’s daily oil production.

Banu, in an interview with our correspondent in Ilorin on Wednesday, also said the NNPC had not given satisfactory answers to the actual daily oil production as well as the revenue shortfall witnessed in the country for some months.

He added that it was worrisome that in spite of the rise in oil prices against the budget benchmark, states and local governments were still having a shortfall in their statutory allocations.

The revenue shortfall, which he said, started about August 2013, had been affecting the cash flows in some states and local governments.

He claimed that despite the shortfall, the Kwara State Government had been meeting its financial obligations such as regular payment of salaries.

He said, “The shortfall is ranging between 25 and 30 per cent. It is very surprising that if you look at the oil price, it is still above the oil budget benchmark.

“The issue is that what is the level of production? What is our oil production per day? They (NNPC) have claimed that the reasons for the shortfall are pipeline vandalism and oil theft. Then, what is the production per day?

“If we know the oil production per day and how much is being stolen, then, we can find out the balance and everybody will be on the same page. But now, the NNPC has not been able to give a very satisfactory explanation to this.”

Banu appealed to all stakeholders to look into the issue dispassionately because it was really affecting the workers.

He said, “Most states and almost all the local governments cannot pay salaries and there is no way we can continue like this.  We need to get to the root of this problem. Somebody must give explanation. We must know the oil production per day so that all of us can see clearly.  If at this level, we do not know what is happening, then it is a problem.”

 

[Punch]